DISCUS Advocates for Greater Transparency Around Private-Label Spirits Products in Texas

The Distilled Spirits Council of the United States (DISCUS) testified before the Texas Senate Committee on State Affairs today regarding the growing role of private and control labels in the spirits marketplace and the need for clear rules to help consumers make informed purchasing decisions while ensuring independent brands have a fair opportunity to compete in the marketplace.

DISCUS Vice President of State Government Relations Corey Staniscia provided testimony highlighting the importance of ensuring consumers have clear information about the relationships between retailers and the brands they sell.

“Texas consumers deserve to know when a retailer has a financial stake in the products being sold or recommended to them,” said Staniscia. “Transparency helps consumers make informed decisions and gives them confidence that they have all the information they need when choosing a product.”

Private-label and control-label spirits are generally products manufactured for or produced exclusively for a retailer, giving that retailer an economic interest in the brand’s success.

“Many consumers have no idea that the store recommending a product may also benefit financially if the consumer chooses that brand,” said Staniscia. “Private-label products should succeed because consumers choose them, not because they receive preferential treatment in the marketplace.”

In testimony before the committee, DISCUS encouraged lawmakers to consider a framework that promotes transparency through clear disclosure of retailer ownership or financial interests in a spirits brand, safeguards against deceptive look-alike products and protections against sales practices that unfairly steer consumers toward retailer-affiliated brands without their knowledge.

DISCUS noted that clear rules for private and control labels would support consumer transparency, fair competition and the continued integrity of the Texas three-tier beverage alcohol system.